Technical outlook:
Today we bring in a World Indices perspective starting with the DAX and followed with Dow Jones, SPX500 and FTSE. Since the COVID-19 pandemic breaking out in late December 2019, a situation of a potential recession has been in the making across major economies including the USA. The fundamental effects caused due to the pandemic will take several months to come to surface but let us have a technical perspective as to what could be the next potential move. s seen on the daily chart here, DAX has revered lower after highs around the 13800 levels on February 20, 2020. After having made interim support around the 8000 levels, DAX might be close to completing its counter trend rally around 10150/200 levels. The indice has managed to test potential resistance around 10150 highs before reversing lower again. It is seen to be trading around the 9860 levels after an intraday high at 10076 today. Also note that the corrective rally had managed to reach up to 50% of the recent drop between 12300 and 7930 respectively. Looking at the global pandemic situation of COVID-19 and the above technical perspective, the DAX looks to be ready to resume lower again below 7970, going forward. The dropping trend line is also providing enugh resistance for the drop to continue further.
Trading plan:
Remain short @ 9850/10000, stop @ 10600, target below 7970.
Good luck!
The material has been provided by InstaForex Company – www.instaforex.com
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
